China Jushi (600176) — Company Comment
Results in Line With Expectations; 2026 Outlook: Volume & Price Uplift for Electronic Glass Fabrics
Key Data Snapshot
| Metric | Value |
|---|---|
| Ticker | 600176.SH |
| Rating | Overweight (maintain) |
| Report date | March 23, 2026 |
| Latest close | RMB 22.65 |
| Total / free-float shares | 4.003 / 4.003 billion |
| Total / free-float market cap | RMB 90.7 / 90.7 billion |
| 52-week high / low | RMB 28.50 / 11.01 |
| Debt-to-assets | 40.4% |
| P/E | 27.58x |
| Largest shareholder | China National Building Material Co., Ltd. |
Earnings Forecast & Valuation
| Metric | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|
| Revenue (RMB bn) | 189 | 236 | 248 | 262 |
| Growth (%) | 19.08 | 24.89 | 5.27 | 5.68 |
| EBITDA (RMB bn) | 71.26 | 71.30 | 78.05 | 82.62 |
| Net profit to parent (RMB bn) | 32.85 | 54.42 | 59.70 | 63.68 |
| Growth (%) | 34.38 | 65.63 | 9.71 | 6.66 |
| EPS (RMB/share) | 0.82 | 1.36 | 1.49 | 1.59 |
| P/E | 28.57 | 17.25 | 15.72 | 14.74 |
| P/B | 3.02 | 2.75 | 2.50 | 2.28 |
| EV/EBITDA | 1.28 | 1.46 | 1.12 | 0.66 |
Investment Thesis
I. Strong 2025 results; standout cash flow
Full-year 2025:
- Revenue RMB 18.88 billion, +19.1% YoY
- Net profit to parent RMB 3.29 billion, +34.4% YoY
- Recurring net profit to parent RMB 3.48 billion, +94.7% YoY
2025Q4:
- Revenue RMB 4.98 billion, +17.8% YoY
- Net profit to parent RMB 0.72 billion, -21.3% YoY (high base from prior-year reversal of unfulfilled profit-sharing accruals)
- Recurring net profit RMB 0.87 billion, +37.6% YoY
Profitability:
- 2025 gross margin 33.1%, +8.1 ppt YoY
- 25Q4 gross margin 35.06%, +6.48 ppt YoY
- 25Q4 recurring net margin 17.46%, +2.5 ppt YoY
Cash flow:
- 2025 operating cash flow RMB 4.201 billion, +106.7% YoY
II. Q4 electronic glass fabric upcycle; traditional roving prices stable
Mix:
- 25Q4 traditional coarse roving prices broadly flat vs. Q3
- 7628 electronic fabric Q4 quotes rose sharply; sentiment improved quickly
III. Tight electronic fabric; high utilization through the year
Drivers:
- Demand: AI compute demand stays strong into 2026, pulling electronic fabric volumes
- Supply:
- Loom capacity constraints
- Industry mix shifting toward high-end
- Persistent tightness in electronic fabric supply
Price view:
- 2026 electronic fabric pricing could rise materially and sustainably
Capacity:
- Huai’an 100k-ton electronic yarn line in full installation
- Company positioned for volume & price uplift in 2026 for electronic fabrics
Financial metrics
Expense ratios
- 2025 period expense ratio 9.8%
- Sales / admin / R&D / finance expense ratios: 1.1% / 3.9% / 3.1% / 1.7%
- YoY change: -0.13 / +1.76 / -0.25 / -0.30 ppt
Key ratios
| Metric | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|
| Gross margin | 33.1% | 38.3% | 39.6% | 39.6% |
| Net margin | 17.4% | 23.1% | 24.1% | 24.3% |
| ROE | 10.6% | 15.9% | 15.9% | 15.5% |
| ROIC | 8.6% | 12.2% | 12.5% | 12.3% |
| Debt-to-assets | 40.4% | 38.8% | 36.7% | 34.8% |
| Current ratio | 1.05 | 1.07 | 1.22 | 1.49 |
Risks
- Intensifying competition in coarse roving
- Weaker-than-expected downstream demand
- Faster ramp of new electronic yarn capacity adding supply
Source: China Post Securities Research
